Big Lots Wins Approval of Rescue Deal After Creditor Backlash

Bankrupt retailer Big Lots Inc. won court approval of a rescue deal to save some of its stores from shutting-down despite challenges from vendors that claimed the deal unfairly saddles them with steep losses.

Judge J. Kate Stickles said late Tuesday she’d approve a sale of the retailer to Gordon Brothers Retail Partners, which intends to transfer between 200 and 400 Big Lots stores to Variety Wholesalers Inc. The sale may also save thousands of jobs, lawyers said Tuesday.

The deal was announced days after an earlier sale to Nexus Capital Management LP unraveled and was also at risk ...